CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Stark Focus Group Inc. (the "Company"), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason.

In this Quarterly Report, unless otherwise noted, the words "we," "our," "us," or the "Company" refer to Stark Focus Group Inc. and our wholly owned subsidiary, Common Design Limited.





General Overview

We were incorporated on July 3, 2018 in the state of Nevada, USA. We acquired 100% interest of Common Design, a Hong Kong corporation as our wholly-owned subsidiary pursuant to a share exchange agreement dated September 20, 2019. Common Design is a start-up wholesale clothing supplier, established on April 10, 2019, specializing in the supply and trading of niche apparel for distribution to markets worldwide. With operating headquarters located in Hong Kong, Common Design is primarily focused on sourcing and marketing a diverse portfolio of dress up, casual and athletic apparel products to its global clients, while maintaining close relationships with its suppliers and manufacturers to ensure competitive pricing and quality management. In addition, Common Design also plans to develop its own apparel products for manufacturing and sales to clients.





Results of Operations

Three months ended June 30, 2021 compared to the three months ended June 30, 2020

Revenues and Operating Expenses:

We generated $13,271 in revenues and incurred $10,828 in cost of sales for the three months ended June 30, 2021 compared to revenues of $12,667 and cost of sales of 10,298 for the three months ended June 30, 2020.

The Company's sales were realized through Common Design which was acquired by the Company on September 27, 2019.

Selling, General and Administrative Expense:

Selling, general and administrative expenses primarily consist of legal, accounting, consulting and other professional service fees. General and administrative expenses were $21,127 for the three months ended June 30, 2021 compared $20,392 for the three months ended June 30, 2020.





Net Loss:

Net loss was $18.684 for the three months ended June 30, 2021 compared to a net loss of $18,023 for the three months ended June 30, 2020.






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Six months ended June 30, 2021 compared to the six months ended June 30, 2020

Revenues and Operating Expenses:

We generated $19,631 in revenues and incurred $16,061 in cost of sales for the six months ended June 30, 2021 compared to revenues of $18,888 and cost of sales of $15,578 for the six months ended June 30, 2020.

Selling, General and Administrative Expense:

Selling, general and administrative expenses primarily consist of legal, accounting, consulting and other professional service fees. General and administrative expenses were $39,837 for the six months ended June 30, 2021 compared $51,601 for the six months ended June 30, 2020.





Net Loss:

Net loss was $36,267 for the six months ended June 30, 2021 compared to a net loss of $48,291 for the six months ended June 30, 2019.

Cash Used in Operating Activities

Net cash used in operating activities for the six months ended June 30, 2021 was $40,269 compared to net cash used in operating activities of $30,799 for the six months ended June 30, 2020.

Cash Provided by Financing Activities

Net cash provided by financing activities for the six months ended June 30, 2021 was $40,721 consisting of advance from related parties compared to $5,837 from advance from related parties for the six months ended June 30, 2020.





Total Assets:

The Company's total assets were $3,552 as at June 30, 2021 compared to total assets of $3,100 as at December 31, 2020.





Total Liabilities:

The Company's total liabilities were $95,623 as at June 30, 2021 compared to total liabilities of $58,904 as at December 31, 2020.





Stockholders' Equity:

The Company's shareholders' equity was negative $92,071 as at June 30, 2021 compared to a negative shareholder's equity of $55,804 as at December 31, 2020.

Liquidity and Capital Resources

As at June 30, 2021, we had cash and cash equivalents of $3,552, total current assets of $3,552 and our total current liabilities of $95,623.

We had working capital deficiency of $92,071 as at June 30, 2021 compared to working capital deficiency of $55,804 as at December 31, 2020.

We received advance from related party of $40,721 during the six months ended June 30, 2021.






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Capital Resources

We anticipate we will need $50,000 for operations for the next 12 months, which includes $12,500 for selling, general and administrative purposes; $22,500 for professional fees, including legal and audit fees; $5,000 for consulting fees; and $10,000 for working capital. Based on the foregoing, our cash on hand will not be adequate to satisfy our ongoing cash requirements.





Future Financings

We anticipate we will need additional financing to fund our business operations in the future and will primarily rely on equity sales of our common stock and loans from related parties. We presently do not have any arrangements or commitments for additional financing in place. There is no assurance that we will achieve additional financing by either sales of our equity securities or by debt financing. In addition, issuances of additional shares will result in dilution to our existing stockholders.

Off-Balance Sheet Arrangements

As of June 30, 2021, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial conditions, changes in financial conditions, revenues or expenses, results of operations, liquidity capital expenditures, or capital resources that is material to investors.

Contractual Obligations and Commitments

As of June 30, 2021, we did not have any contractual obligations and commitments.

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